Louisiana Becomes the Latest State to Join the Interstate Compact

33 States Now Members of the Interstate Compact

Louisiana became the 33rd state to enter into the Interstate Insurance Product Regulation Compact on June 21 when Governor Bobby Jindal signed Louisiana House Bill 369 into law. According to the Interstate Insurance Product Regulation Commission (IIPRC), with Louisiana’s entrance into the compact, the IIPRC now represents 54 percent of nationwide insurance premium volume for the covered products.

The Interstate Compact aims to improve the speed-to-market conditions for life insurance, annuity, disability income and long-term care products through the use of one regulatory body to review new insurance products. The ability to obtain approval from a single source for the sale of insurance products in multiple states gives insurers a more efficient and uniform product approval process than the multistate product review system. Faster product review benefits consumers and NAIFA members by making new protection products available sooner.

NAIFA-Louisiana President David Romero, ChFC, RFC, CRC praised the adoption of the Compact. “NAIFA Louisiana has long advocated for adoption of the Interstate Compact and we are excited that Governor Jindal has signed the bill into law” said Romero. “Since the Interstate Compact Commission began receiving product filings last year, the average review period for new life insurance and related products is less than 40 days. With the adoption of the Compact in Louisiana, our clients will now benefit from access to innovative new products to serve their needs.”

NAIFA has been a strong supporter of the Interstate Compact since helping the National Association of Insurance Commissioners (NAIC) draft the model Compact law in 2002. This support continues today as NAIFA, and its health insurance conference AHIA, are the only groups representing the agent community on the Compact Commission’s Industry Advisory Committee. NAIFA state associations across the country have also been critical proponents of Compact legislation as it’s introduced in state houses across the country. The Compact became operational in 2006 and began accepting its first product filings in 2007. Several other states are also considering Compact legislation this year.

 To learn more about NAIFA’s positions on all regulatory reform efforts, please visit the Insurance Regulatory Reform and Modernization section of NAIFA’s website at www.naifa.org/advocacy/irr.

NAIFA Staff Contact: Michael Gerber, Vice President & General Counsel at 703-770-8190.